You probably realize that you should have an estate plan, but what you may not realize is that this isn’t a one-and-done situation. Once you have your estate plans set, there will be times when you need to review and potentially update the plans.
Changes to an estate plan usually occur when you have major life changes. Failing to update it can leave assets unprotected or cause confusion among your loved ones. Knowing when you should review your estate plan is critical.
Major life events
Major events in your life, such as the birth of a child, adoption, marriage or divorce are classic reasons for you to review your plan. The same is true if someone who is named in any of the documents passes away. In these cases, you will need to update beneficiary designations to reflect the new plan.
Asset or financial changes
Buying or selling a home or a business can lead to a review. You should also check your estate plan if you have a significant increase in wealth or a shift in your investment strategy that would impact how your assets should be distributed. Additionally, you may need to update your plan if there are changes in tax laws or estate planning laws.
Even if you don’t have any changes in your situation, you should still review your estate plan every three to five years to ensure that it still reflects your current wishes. Working with someone who is familiar with your plan and what you want it to accomplish may make this process easier for you.
